AFSCME to members: Put away cash for possible strike

The largest state employee union has sent a memo to members outlining ways they can prepare for a possible strike. The American Federation of State, County and Municipal Employees urged members to start saving money while also outlining why a strike may be in the offing.

“AFSCME members are doing everything possible to achieve a fair contract settlement without any form of work stoppage,” the memo states. “But so far, the Quinn administration has refused to back away from its demand for draconian increases in health care costs. A strike of state employees may be the only way to resist those increases.”

The memo was first revealed by Lee Enterprises.

Quinn’s budget office did not respond Monday to questions about steps the administration might be taking to prepare for a strike.

“The state is still at the table negotiating with AFSCME,” said spokesman Abdon Pallasch. “We are committed to getting a deal that is fair for state employees and taxpayers.”

“It all depends on the behavior of the Quinn administration,” Bayer said.

AFSCME says the administration’s bargaining position is anything but fair to employees. The union has agreed to a one-year wage freeze, but the administration wants to freeze salaries for the entire three-year term of the contract. AFSCME also says health insurance changes sought by the administration would cost a mid-level employee $10,000 over the next three years.

“By comparison, the average salary an employee in that range would lose over each week on strike would be only $1,000,” the AFSCME memo says. “So a strike would have to last over two months before those employees would lose as much as they would if management imposes its demands.”

AFSCME said it does not administer a strike fund to aid workers in the event of a work stoppage. The union told its members “planning now will prepare you financially to cope with the effects a strike can have on you and your family.”

The memo says workers should start saving money from each paycheck to tide them over during a strike. It also suggests putting any overtime pay into a separate account, delaying major purchases, scheduling medical appointments and stocking up on prescription drugs. It also urges workers to review their household budgets and eliminate things that are not absolutely necessary.

AFSCME says it is working with “key financial institutions” about making low-cost, short-term loans available to striking members. The memo also says some businesses will waive payment deadlines in the event of a strike and that employees can borrow against their deferred compensation plan if they participate.

Page 2 of 2 - AFSCME members would have to vote to authorize a strike. A vote has not been taken.

“There will not be a strike unless a majority of members vote,” Bayer said. “When they are pushed into a corner as this administration is trying to do, then they have no alternative. If there is a strike, it will be because the administration has provoked it.”

Doug Finke can be reached at 788-1527.

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No agreement in pension summit

A pension summit called by public employee unions Monday failed to produce any agreements between the unions and state officials on pension change proposals.

We Are One Illinois, a union coalition, called for the summit.

“There wasn’t a lot that came out of this,” House Republican Leader Tom Cross of Oswego said after the meeting. “I wasn’t expecting a whole lot more. Everybody’s got to be willing to move a little bit, and that just doesn’t seem to be happening.”

“Our summit’s purpose today was to move cooperatively toward an agreed pension funding solution,” the coalition said in a statement. “The governor and legislative leaders should seize this opportunity and use the momentum from today’s summit to finally, seriously negotiate a fair and constitutional solution that all parties can support. Our push for such a pension agreement will continue in the days and weeks to come.”

Cross, though, said Gov. Pat Quinn squelched the idea of an “agreed bill,” a concept in which a pension reform bill would not advance in the legislature unless all parties, including the unions, agree to it.

“They (the unions) were looking to see if there could be an agreed bill process. The governor did not agree to that,” Cross said.

Quinn’s office said it is willing to listen to ideas, but something needs to be done.

“We had a number of meetings with union leaders,” said Quinn spokeswoman Brooke Anderson. “The debt and credit downgrades are not a viable way forward for Illinois.”

The unions have proposed ending business tax breaks and enacting some new taxes to produce $2 billion a year for pensions.

“I don’t think there is an appetite for more revenue,” Cross said.

Lawmakers raised the income tax by 67 percent in 2011. Virtually all of the receipts have gone to make state pension payments.

Although the unions do not want a change in benefits, Cross said changes must be made to pension cost of living adjustments — now 3 percent a year, compounded.

“The 3 percent COLA that compounds is such a driver in terms of what it costs us and, in the alternative, in how much we save (by changing it),” Cross said. “That’s where you can put a dent in this unfunded liability.”